Exploring Deeper The Gadget Insurance – Both Sides Of The Story

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Unexpected and unfortunate incidents can set us back in many ways. Be it our goals, plans, savings or financial security, all it takes is a wicked flick of destiny’s hands and everything falls apart like a house of cards. For a long time now, different insurance products have protected our interests in those unexpected situations and given us the power to get back on our feet. With time, insurance has spawned many types covering a huge number of sectors and the newest in its offerings is the gadget insurance.

With tablets, smartphones, LED TVs, MP3 Players, PDAs and thousands of other gadgets becoming central parts of modern life, it was a timely move and a well appreciated one.  Most people today carry more than one of such devices everywhere they go and accidental loss, theft or damage can leave them helpless. Having your device insured not only saves you the money to buy a new one but also guarantees you the peace of mind.

Warranty vs Extended Warranty

All the devices today come with a fixed period warranty and by spending some extra money you can extend the duration of the warranty. Most warranty cards will have the words “Replacement Warranty” written in large bold fonts. The fine prints however tell another story. Most manufacturers replace devices only if the problem is due to faulty hardware or software parts. If the device is found broken or burned, warranty is void more often than not. If you accidentally spill some coffee on your smartphone then you can forget about replacements.

Most manufacturers do not consider stolen device claims as it is considered as your responsibility to safeguard your possession. Extended warranty simply increases the fixed warranty period but the clauses remain all the same. Presented with both sides of the coin, it is pretty easy to decide in favor of gadget insurance, especially now that the insurance can be applied for as low as one and a half pounds per month.

A Matter of Concern for Policyholders

If everything has seemed rosy so far, things are about to change slightly. Falsified claims have seen a huge increase in recent years. These claims are costing the gadget insurance industry millions of pounds forcing them to increase insurance premium rates. According to recent studies, almost 40% of the policyholders are involved in fake, exaggerated or cruel claims. Unfortunately it is the honest policyholders that bear the impact of such illegal activities.

However, things are looking to change with the industry enforcing strict investigative measures and hiring experienced personnel to crack down on such cases fast and heavily. With everything the way it is, it is still a very good option to get your precious gadgets covered by a reliable insurance policy.

+Kerry Tiwana is a full time tech savvy blogger, author and founder of TechMafia, you can follow him on Facebook.

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